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How the Healthcare Reform 'Bailouts' Work and How Some Insurers Are Farming Them
Benefit Revolution Link to more items from this source
Dec. 8, 2014
"The big difference between the Three Rs is that the first two Rs (the reinsurance and risk adjustment programs) either have a delineated flow of revenue support (the $63 tax on all health plans) or the payouts are to be limited to what the program takes in (all transfers are slated to balance out in the risk adjustment program - at least for now). The risk corridor program, however, has no set source of revenue. This means that if more insurers underprice their Obamacare plans in an effort to gain market share than plans who over-price, there will be a PPACA shortfall on this third R. Where would that money come from?"

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